How is a decrease in intangible asset treated in Revaluation Account?

Correct answer: Debited as loss

The direct answer is Option A: a decrease in an intangible asset is debited to the Revaluation Account as a loss. An intangible asset is a non-physical asset, such as goodwill, a patent, or a trademark. When its value falls, the business has suffered a decrease in its asset value. The loss is therefore recorded on the debit side. For example, if goodwill falls by ₹10,000, Revaluation Account is debited by ₹10,000. Option A is correct because every fall in an asset value is a loss for the firm. Option B is wrong because a credit normally records a gain, whereas this is a loss. Option C is wrong because the amount is not directly credited to capital; after finding the revaluation result, the net profit or loss is transferred to the appropriate old partners’ capital or current accounts. Option D is wrong because no bank payment or bank balance is involved merely because the asset value has decreased. Remember: decrease in asset means debit; increase in asset means credit.